Reborn Tycoon Rise

"It's just a bridge, just use it as a bridge. The main thing is loans anyway." Xu Zhi waved his hand and said. Although the location of the Huangpu River Bridge has not yet been determined, experts estimate the budget to be between US$90 million and US$120 million. If it is operated according to the capital of Xiangjiang, 90% of the funds will come from loans, and the first batch of the project will An initial capital of US$3 million is sufficient.

That is to say, the mainland has just opened up and does not dare to borrow too much funds from foreign banks. Otherwise, it will develop faster throughout the 1980s, and many large-scale infrastructure projects do not require the involvement of Hong Kong capital at all.

Xu Zhi then asked: "How is the construction of Mong Kok Center going?"

Wang Liming said: "It will be capped soon. According to Xiangjiang law, we can pre-sell."

"Okay, let's start preparations after the year." Xu Zhi nodded and said. Mongkok Center is Evergrande's first large-scale commercial project. When it was first built, Xu Zhi did not have a construction team, so he contracted the entire project. go out.

More than a year has passed now, and the 22-story shopping mall office building is about to be topped out and can also be prepared for pre-sale.

Hong Kong’s laws stipulate that pre-sales of pre-planned properties must be started eight months before the house is built. This method actually increases the difficulty of capital turnover for real estate companies, and also curbs the rise in housing prices to a certain extent. Otherwise, without this provision, it is estimated that When the land was still wasteland, off-plan properties were sold!

Wang Liming asked: "Xu Sheng, according to the development of several of your companies, it is time for us to have a headquarters building of our own."

Xu Zhidao: "You mean that Mongkok Center is not for sale but that we hold it ourselves?"

Wang Liming nodded and said: "Yes, although we own the Federal and International buildings, many of the tenants' leases have not expired, and the central location of Mong Kok is also good. As a headquarters, several companies can gather together, and it will It’s a lot more convenient.”

Xu Zhi shook his hand and said with a smile: "No, let's sell it as planned. Mong Kok Center was designed to be split and sold. If it is suddenly converted into a headquarters, the internal structure will need to be redesigned, and the area will be larger than the current Hutchison Building." It’s not much bigger, it’s better to wait until new land becomes available and we can build the headquarters building separately.”

Hutchison Whampoa sold a large number of its non-core businesses some time ago, and along with it, many departments in the headquarters building were also emptied, so the headquarters of Evergrande, Changxing and Midea Electronics also moved in.

However, Heshi Building is already an old building and can no longer keep up with demand in many aspects.

But building a large headquarters building is not an easy task. According to the current land price in Hong Kong Central, it is estimated that the land alone will cost HK$2 billion. Plus the subsequent construction costs, this is equivalent to Midea's annual profit.

Rather than wasting this money now, it is better to wait another two years, when land prices plummet, it will be the prime time to build the headquarters building.

The boss had already spoken, but Wang Liming had no choice but to give up, so he asked: "The Xiangjiang Metro Company sent a document to consult us a week ago, asking whether we will participate in the land auction to be held next month?"

"Which piece of land?" Xu Zhi asked.

Wang Liming said: "The land on Hongmian Road in Admiralty is very small, only 13,800 square feet. After thinking about it, I can only build a small office building in such a small area."

"Red cotton road?" Xu Zhi smiled. He already knew which piece of land this was. In the original history, the transaction volume of this piece of land was as high as 480 million Hong Kong dollars.

This amount is nothing in the history of land auctions in Hong Kong, but what really makes it famous is that its average transaction price is as high as 34,700 Hong Kong dollars per square foot, which is more than 300,000 per square meter. Even in 2019, the entire There is no land king in the Mainland that can reach half of it, and it is only 1981. The transaction of this land actually marks that Xiangjiang's real estate has entered the final madness.

"The current land prices have gone crazy, so we will not participate." Xu Zhi said: "Last year, the main tasks of Evergrande and Hutchison Real Estate were to sell handicraft land and buildings, but this year they will sell all except Central and Kowloon Peninsula. Sell ​​all the commercial land to me."

Wang Liming knew that Xu Zhi was not optimistic about the future prospects of Xiangjiang Real Estate, so he asked: "Sheng Xu, if you continue to sell properties, you will accumulate a large amount of cash. Do you need to reinvest or pay off the company's loan?"

Hutchison Whampoa owes more than HK$2 billion since Xu Zhi took over, while Evergrande owes even more. It acquired Hutchison Whampoa, Hong Kong Electric, and two federal and international buildings, and privatized Hong Kong Electric's real estate business. It borrowed more than 700 million Hong Kong dollars. 100 million Hong Kong dollars, which is also the highest level of Xiaobo Da. From the beginning to the end, Xu Zhi only used more than 1 billion Hong Kong dollars of his own funds, but in the end he controlled two giant companies with total assets of more than 10 billion Hong Kong dollars. Now he is riding a wave of When the real estate market soared, the properties and land were sold to cash out funds. Once the previous loans were paid off or the debt was reduced to a low level, the two companies would be completely stabilized.

Of course, this method is not easy to implement, because Xu Zhi's Midea company is highly profitable, which is the fundamental reason why he was able to borrow billions of Hong Kong dollars.

Xu Zhi thought for a while and said: "Evergrande can repay part of the loan appropriately, but Hutchison Whampoa doesn't have to. And in the next few months, I intend to let Hutchison Whampoa issue irredeemable bonds on the stock market, which will cost about HK$3 billion."

Although there are unlimited opportunities in the future, outsiders will not see the future prospects as clearly as Xu Zhi. Evergrande's current debt ratio is too high. Standard Chartered and several other Chinese banks that cooperate with it have warned it several times. I hope Evergrande reduces risks.

Repaying part of the money now is to allow the cooperating banks to put down their worries and prepare for greater cooperation in the future.

As for Hutchison Whampoa, it is a listed company anyway and the debt is not too serious. There is no need to reduce debt for the time being. Instead, it requires greater investment. And because only Hutchison Whampoa is a listed company, it is most convenient for it to raise funds in the stock market.

"3 billion Hong Kong dollars, what further investment is needed?" Ma Shimin was a little confused. The company's current cash flow is already very high. What is the purpose of raising another 3 billion Hong Kong dollars?

Xu Zhi smiled and said: "I am going to invest in the United States!"

"The United States?" Ma Shimin asked, "Is it a large-scale infrastructure project?"

Xu Zhi shook his head and smiled: "No, it's a company's shares. I'm very optimistic about the future of this company. I've already communicated with their senior management. Under appropriate circumstances, we can buy shares at a discount."

"Which company?" Ma Shimin asked.

Xu Zhi said: "General Electric, you must have heard of it!"

"I've heard of it." Wang Liming and Ma Shimin replied almost simultaneously. Although they are not usually exposed to the technology industry, they have heard of the name General Electric.

Xu Zhi said with a smile: "Reagan, the new president of the United States, has taken office, and I have received inside information that the United States will soon cut interest rates and taxes to stimulate the economy. In this case, the U.S. stock market will inevitably rise, and General Electric is one of the leaders. , I am fully confident about this investment!”

"Isn't this a bit risky?" Ma Shimin suggested tactfully. After all, financing requires high interest payments.

If it is a real estate or terminal project, Hutchison Whampoa can calculate the risks and profits to determine whether the investment is worthwhile, but transferring HK$3 billion to the United States to invest in a company makes him a little scared.

"You don't have to worry about this, just do it as I ask!" Xu Zhi didn't want to explain too much and gave the order directly. The reason why this investment was given to Hutchison Whampoa is that he is more optimistic about the development of Hutchison Whampoa's many businesses. , especially terminals, ports and other infrastructure businesses, future expansion also requires sufficient funds.

With some understanding of the future and current capital, money no longer means much. What Xu Zhi needs at the moment is a lot of influence that can change the economic development of a region or even a country, and infrastructure has a lot of power in this process. Great effect!